Investing is more of a common sense than intelligence. An investor with high IQ and low EQ is not intelligent at all. In the contrary world on intelligence is considered as a measured value of IQ, but in the investing world it plays little role. Sure a person with high IQ can calculate the risk and rewards, the sectorial cage growth or even can find his own formula to find multibagger. But if he is fragile on patience and discipline, he won't be the intelligent investor. Investing is a fun process until we see a major loss. When confronted with such situations, we forget everything and the primitive brain of flight or fight gets activated. So most investors sell their holding along with the masses instead of buying more at the discounted price. They know the market is gonna revive sooner and stronger, but they won't listen to their logical mind and keep their selling activity on. Here the fear surmounts every knowledge and experience. So it is important to be an intelligent investor with little common sense and more patience.
The first mover advantage maybe a myth like MySpace. It is not necessary to have a first mover advantage, but it may do good if managed correctly. In the world of crypto we could see Bitcoin reigning over a decade as the leading coin. It got its first mover advantage and it is way ahead than other altcoins. But does it means it will lead forever ? Not really. I’m case of Amazon the first mover advantage was a great benefit. It is not that because of Amazon being the first to deliver goods through online, it is the ever growth mindset of Jeff Bezos. Like in case of any other thing, the important factor is not the advantage, but the mindset that drives it behind. Last day I wrote about having a progressive mindset. But when it comes to BTC, the driver behind it is clearly absent. Its first mover advantage is getting it to the top, but as soon as when one person with growth mindset comes with an equivalent product (which already happened), the first mover advantage may slay. ...
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